Investment turnaround in agrochemicals
Our client, a global agrochemical company, built a new production facility to accommodate growth in an emerging market. During the construction technical difficulties, stricter regulations and deteriorating market conditions led to poor investment returns. Strategic Partners Group was asked to advise management on whether to restructure or abandon the investment.
Developed scenarios to structure and evaluate the sources of uncertainty which impacted the project’s viability. Identified key areas of managerial flexibility. Employed Decision Tree Analysis to define key decision parameters and investment stages. Tested decisions against developed scenarios. Designed an optimized investment scheme and a practicable decision path.
Our work resulted in a scaled-down modular investment dependent on the successful passing of several decision gates.